AU Morning Wrap: ASX Rallies 0.7%, Credit Corp Dives

US stocks rose as a slowdown in rising labour costs eased pressure on the Federal Reserve to keep raising interest rates. The US central bank started a two-day meeting overnight that is expected to conclude with a 25 basis point rate hike.

The Employment Cost Index increased a smaller-than-expected 1 per cent last quarter, according to the Labor Department. The rise was the smallest in a year and followed a 1.2 per cent increase the previous quarter. Wages increased 1 per cent, also the smallest lift in a year.

Gains were broad with materials at the top.

The Reject Shop fell 2.4 per cent after the sudden resignation of CEO Phil Bishop for personal reasons, just seven months into the top role.

Maggie Beer Holdings rose 2.3 per cent after its second-quarter sales increased.

Credit Corp Group dropped 6.5 per cent after its net profit dropped 30 per cent in the first half of 2023 to $32 million due to provisioning and US resourcing costs.

The agreement includes investment in motorway upgrades, environmental protection and safety developments, and customer service improvements.

Earnings are expected to recover strongly over the second half of the fiscal year and full year net profit after tax guidance remains intact.

The company has experienced favourable agricultural conditions across the major grain producing regions, where demand remains strong for both seed and crop protection products.

Net sales were $49.9 million for the December half.

Chief financial officer Clinton Cahn will step in as acting CEO until a permanent replacement can be found.

• Iron ore retreated amid reports of stock back-ups at Chinese ports after the Lunar New Year break. Buyers sat on their hands after prices broke above US$130 a tonne on Monday when trade resumed after the week-long holiday.

The most-traded May ore on the Dalian Commodity Exchange ended daytime trade 1.3 per cent lower at 866 yuan (US$128.25) a tonne.

• Gold ended a third straight monthly advance with its first rise in four sessions. Gold for April delivery settled US$6.10 or 0.3 per cent ahead at US$1,945.30 an ounce. The NYSE Arca Gold Bugs Index edged up 0.17 per cent.

The yellow metal rallied 6.5 per cent last month as the US dollar and US treasury yields retreated. The US dollar index, which weighs the greenback against a basket of other currencies, declined more than 1 per cent in January.

• Oil trimmed a losing month ahead of tonight's OPEC+ committee meeting. Brent crude for April delivery, now the most active contract, settled 96 US cents or 1.1 per cent ahead at US$85.46 a barrel. The March contract, which expired at the end of the session, lost 1.7 per cent in January.